White Birch Presents Proposal to Union Employees of Idled Stadacona Mill

White Birch Paper Co., Quebec City, Que., Canada, reports that it has presented a global proposal to employees of its idled Stadacona mill in Quebec City. Following a thorough analysis of the mill's cost structure, White Birch says the proposal represents a final opportunity to implement savings necessary for Stadacona to avoid permanent closure in light of significant manufacturing cost disadvantages, as well as the ongoing deterioration of economic conditions in the newsprint industry.

Commenting on the proposal, Christopher Brant, president of White Birch said that "while I remain acutely aware of the pain that Stadacona's idling has already imposed on our valued employees and community, I must emphasize that the situation at the mill is extremely grave. Without significant reductions in salary, pension benefits, and other costs, Stadacona simply cannot survive."

Brant added that "in spite of the mill's dire economic situation, White Birch has made a final proposal to its unionized employees. Acceptance of this proposal is essential for the mill to resume operations and will help ensure the mill's long-term viability, while reestablishing its position as a valued employer in the Quebec community. The proposal we have submitted today represents the final opportunity to secure that outcome and I urge Stadacona's employees to give it serious consideration."

White Birch produces newsprint, directory paper, and paperboard, with mills in Canada and the U.S. It is the second largest newsprint manufacturer in North America.

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